How do we Anchor

Deciding on the pice due to anchoring

This theme was mentioned in both "Paradox of Choice" and "Predictably Irrational"
For me this affects my behavior when it goes along with convenience, time and other factors.
When we think of anchoring is it trying to nudge us to make a correct buying decision

Or is it a trick that tries to get us to pay a better looking price by presenting a unreasonable with it

There was so much hype about the ipad being $999 before the price was set that the price of $499 seems like a steal even though it was an imaginary price that anchored the starting price.

How do we as the consumers know it is a good deal, especially when their is no competition. And even when their is competition what brands do we put into the same category to compare prices.

This is why I think that anchoring is only a useful tool if we us it with other purchasing decisions.